Buyers ignore gloomy market predictions

A new survey has revealed an optimistic home buyer outlook for the year ahead – although a number of respondents have indicated their support for increased restrictions on property investors in 2016.

Vendors and buyers seem to have entered 2016 in a calm state of mind, with many expecting flat prices and reasonable market conditions.

According to a survey of more than 1,200 domain.com.au users, 42.5 per cent forecast that property prices will remain steady in 2016, while 18.4 per cent forecast a decline.

Heading into 2016, the survey also found that 76.8 per cent of respondents were positive or neutral about the property market in general, while 23.2 per cent were negative or stressed.

Of the buyers who were surveyed, 46.8 per cent said one of their wishes for 2016 was for there to be greater restrictions on foreign investors, while 19.2 per cent wished for greater restrictions on investors in general.

Another 31.8 per cent wished for lower interest rates, 27.5 per cent for more government support for first home buyers and 9.2 per cent for increased property development.

Domain Group senior economist Andrew Wilson said the property market was likely to experience more stability in 2016 than it did in 2015.

“[Last year was] a roller coaster ride for the property markets in Sydney and Melbourne, which has now come to a stop, with other capital cities experiencing only moderate growth in line with under-performing local economies,” he said.

“Looking ahead, we can expect the 2016 property market to be much more stable. Property price growth in Sydney and Melbourne is expected to be a lot flatter, and will match what has been happening in other capital cities over the last two years.”